HPP and Blackstone refinance Hollywood portfolio with $1B loan

Barclays, Bank of America and 2 others originated debt on 2M sf of studios, offices

Los Angeles /
Aug.August 16, 2021 10:10 AM
Blackstone Group's Jon Gray and Hudson Pacific Properties's Victor Coleman (Getty, HPP)
Blackstone Group’s Jon Gray and Hudson Pacific Properties’s Victor Coleman (Getty, HPP)

Hudson Pacific Properties and Blackstone Group have secured a $1.1 billion refinance on their Hollywood film studio and office portfolio.

Barclays, Bank of America, Wells Fargo Bank and Société Générale originated the two-year, floating-rate and interest-only loan, according to Commercial Observer. Proceeds from the new financing were used to pay down the previous $900 million CMBS debt.

The partners nabbed the previous loan shortly after Blackstone bought a 49 percent stake in HPP’s $1.65 billion Hollywood portfolio last year.

The 2.2-million-square-foot studio and office portfolio includes Sunset Bronson, Sunset Gower, and Sunset Las Palmas Studios.

It also includes the office complexes of 6040 Sunset Boulevard, ICON, CUE, EPIC, and Harlow.

The portfolio as a whole is 86 percent occupied with a weighted average lease term of about seven and a half years, according to the report.

Netflix is the largest single tenant across the portfolio with about 700,000 square feet combined of office and studio space. ABC, Disney, and KTLA also rent chunks of the property.

The JV also has big plans to expand the Sunset brand. They’re nearly set to double the size of Sunset Gower Studios with another 500,000 square feet of office and studio space.

They’re also planning to expand the Sunset Studios brand with a 10-acre complex in Sun Valley.

Their largest project is slated for across the pond. The partners want to build a 91-acre complex north of London. It would be the brand’s first property outside of the United States.

[CO] — Dennis Lynch





    Related Articles

    arrow_forward_ios
    A photo illustration of A.J. Khair principal Demetri Samaha along with renderings of 1919 North Wilcox Avenue (A.J. Khair, GA Engineering, Inc., Getty Images)
    A.J. Khair to add 65 apartments to Hollywood inventory
    A.J. Khair to add 65 apartments to Hollywood inventory
    Mike Sullivan and rendering for 6000 W. Hollywood Blvd (The Sullivan Family, Getty Images)
    Toyota of Hollywood could turn into a retail village
    Toyota of Hollywood could turn into a retail village
    Google CEO Sundar Pichai, Hudson Pacific Properties CEO Victor Coleman and One Westside at 10800 Pico Boulevard (Hudson Pacific Properties, Getty)
    Google denies any construction delays at One Westside
    Google denies any construction delays at One Westside
    Google CEO Sundar Pichai, Hudson Pacific Properties CEO Victor Coleman and One Westside at 10800 Pico Boulevard (Getty, Hudson Pacific Properties)
    Google faces delays on One Westside buildout
    Google faces delays on One Westside buildout
    Philip Lawrence and Thomas St John and the three parcels on the corner of Sunset Boulevard and Highland Avenue in LA (Google Maps, Getty, CMNTY Culture)
    Hollywood studio project garners $35M loan to buy land
    Hollywood studio project garners $35M loan to buy land
    Hudson Pacific Properties Victor Coleman and Art of Quixote studios (Hudson Pacific Properties)
    Hudson Pacific Acquires Quixote Studios for $360M
    Hudson Pacific Acquires Quixote Studios for $360M
    Blackstone Group's Stephen A. Schwarzman (Getty, Mike Greene/CC BY-SA 2.0/via Wikimedia Commons)
    PS Business Parks buy gives Blackstone portfolio in Signal Hill
    PS Business Parks buy gives Blackstone portfolio in Signal Hill
    From left: Blackstone’s  Kathleen McCarthy, Silver State Real Estate's Harshad Dharod, and Blackstone's Kenneth Caplan with  3610 Banbury Drive (Blackstone, Silver Star, The Foto Finisher)
    Blackstone sells Riverside apartment complex for $102M
    Blackstone sells Riverside apartment complex for $102M
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...